Climate Change Data

ProCredit Holding AG

Climate Impact & Sustainability Data (2017, 2018, 2021, 2022, 2023)

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:15,627 tCO2eq/year
Scope 1 Emissions:1,770,564 kgCO2eq/year
Scope 2 Emissions:8,995,232 kgCO2eq/year
Scope 3 Emissions:4,861,326 kgCO2eq/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:22,406 MWh/year
Water Consumption:53,185 m3/year
Waste Generated:163 tons of paper waste, 131 tons of e-waste/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Business Model
  • Approach to Clients
  • Approach to Staff

Environmental Achievements

  • Reduced total CO2 emissions by 14%
  • Reduced total energy consumption of buildings by 21%
  • Reduced water consumption per employee by 6%
  • Reduced paper consumption per employee by 20%
  • Increased share of green loan portfolio to 12.6%

Social Achievements

  • Increased diversity of middle management to 49% women
  • Invested EUR 6.9 million in employee training
  • Provided an average of 17.8 training days per employee
  • Improved loan portfolio quality (PAR30 down to 2.9%)

Governance Achievements

  • Implemented a group-wide Code of Conduct
  • Upgraded MSCI ESG rating to AA
  • Became a member of the London Social Stock Exchange
  • No significant non-compliance events identified

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Increase share of private clients using internet banking to 50% by Dec 2018
  • Increase share of e-cars and hybrid cars in fleet to 50% by Dec 2018
  • Achieve 15% green loan portfolio by end of 2018
  • Implement group standards for financing renewable energy projects at all banks outside Germany by Dec 2019
  • Provide comprehensive training to responsible staff on renewable energy finance by Dec 2018
  • Reach B1 level of English among all employees by Dec 2018

Environmental Challenges

  • Volatile operating environment in transition economies and developing countries
  • Relatively intransparent business practices and low level of trust in banks
  • Low level of environmental awareness
  • Lack of protection and enforcement of regulations
  • Tightening interest margins since the financial crisis
Mitigation Strategies
  • Disciplined, transparent approach to banking and conservative risk management
  • High standards beyond regulatory requirements
  • Culture of understanding and compliance among staff
  • Effective compliance function
  • Robust credit risk management processes tailored to SME clients
  • Focus on long-term, sustainable partnerships with clients
  • Investment in modern technology and digital solutions
  • Continuous investment in staff training and development

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Environmental criteria incorporated into Procurement Policies

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Financing renewable energy projects and energy-efficient technologies

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, EMAS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 4
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 12

Initiatives contribute to decent work, economic growth, quality education, affordable and clean energy, responsible consumption and production

Sustainable Products & Innovation

  • Green loans

Awards & Recognition

  • Not disclosed

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:13,331 tCO2
Scope 1 Emissions:1,404,773 kgCO2
Scope 2 Emissions:7,032,745 kgCO2
Scope 3 Emissions:4,893,442 kgCO2
Renewable Energy Share:39%
Total Energy Consumption:17,293 MWh
Water Consumption:43,232 m³
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Economic development
  • Corporate governance
  • Environmental management
  • Technology and innovation
  • Reliable and stable partnerships
  • Sustainable finance
  • Prudent credit risk management
  • Ethical values and working environment
  • Fair recruiter and employer
  • Staff development

Environmental Achievements

  • Reduced CO2 emissions by 15%
  • Reduced energy consumption in ProCredit buildings by 23%
  • Increased share of hybrid and electric cars in the fleet to 57%
  • 100% of paper waste recycled
  • 31% of e-waste recycled, 69% reused
  • Own PV systems producing 160 MWh in 2018, resulting in a CO2 emissions reduction of 93 tonnes

Social Achievements

  • Continued investment in staff training (146 hours per employee)
  • Improved portfolio quality (Defaulted loan portfolio decreased to 3.1% of gross loan portfolio)
  • Supported the expansion of debt counselling and legal advisory services in Frankfurt am Main
  • Transparent recruitment process attracting and retaining employees
  • 51% of management board members are women

Governance Achievements

  • No significant non-compliance events identified
  • Transparent corporate governance structure
  • Strong compliance culture
  • Implementation of German banking regulations and EU Market Abuse Regulation

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase the relative size of the group’s green loan portfolio to 20% of the total loan portfolio
  • Become carbon neutral with regard to the group’s own CO2 emissions
  • Further increase the high level of social and environmental competence among our staff
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Volatile operating environment in transition economies
  • Relatively intransparent business practices and low levels of trust in banks
  • Low levels of environmental protection and enforcement of regulations
  • Tightening interest margins
  • Subdued economies and investment climate
Mitigation Strategies
  • Robust credit risk management processes
  • Strong compliance management systems
  • Focus on SME clients and direct banking
  • Investment in state-of-the-art equipment and information technologies
  • Comprehensive environmental management system (EMS)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Environmental criteria incorporated into procurement policies

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Financing renewable energy projects

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, EMAS (for German institutions)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 5
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 12
  • SDG 13
  • SDG 16

ProCredit's activities contribute to these goals through sustainable finance, environmental management, and social initiatives.

Sustainable Products & Innovation

  • ProCredit Direct online banking platform

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:5,486 t CO2eq (2021)
Renewable Energy Share:60% of electricity from renewable sources

ESG Focus Areas

  • Green Finance
  • Carbon Neutrality
  • Staff Competence
  • Economic Development
  • Corporate Governance
  • Internal Environmental Management
  • Technology and Innovation
  • Reliable Partnerships and Transparent Services
  • Prudent Credit Risk Management
  • Ethical Values and Working Environment
  • Fair Recruiter and Employer
  • Staff Development

Environmental Achievements

  • Direct carbon footprint totalled -56% of 2018 CO2 emissions.
  • 11% reduction in energy consumption in office buildings between 2018 and 2021.
  • 59% of the vehicle fleet is electric and 12% is (plug-in) hybrid.
  • Green loan portfolio grew by 14.5%.

Social Achievements

  • Total hours devoted to environmental training: 13,850.
  • Total hours devoted to Code of Conduct training: 14,132.
  • 425,010 hours of training were provided to ProCredit Bank colleagues in 2021 (average 16 days/employee).

Governance Achievements

  • 0 incidents of reported discrimination in 2021.
  • 0 incidents of non-compliance with environmental laws and regulations.
  • 0 incidents of non-compliance with social/economical laws and regulations.

Climate Goals & Targets

Medium-term Goals:
  • Increase the share of green loans in the total portfolio; align environmental and social risk assessment with the EU Taxonomy.
Short-term Goals:
  • Carbon neutrality by 2023
  • 20% green loan portfolio by 2023

Environmental Challenges

  • Challenges in reaching the 20% green loan portfolio target in all countries due to regulations and infrastructure limitations.
  • Lack of data for Kosovo in UNEP FI Portfolio Impact Analysis.
Mitigation Strategies
  • Focusing efforts on increasing the share of green loans in countries where the target wasn't met.
  • Addressing data gaps and engaging local stakeholders in future UNEP FI Portfolio Impact Analyses.

Supply Chain Management

Responsible Procurement
  • Code of Conduct; Supplier Sustainability Requirements; Sustainable Supplier Screening and Assessment Tool.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, UNEP FI Principles for Responsible Banking, IFC Performance Standards, EBRD Performance Requirements, PCAF, TCFD

Certifications: ISO 14001, EMAS (Germany-based institutions), EDGE (4 bank headquarters)

UN Sustainable Development Goals

  • SDG 2
  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 10
  • SDG 11
  • SDG 12
  • SDG 13
  • SDG 14
  • SDG 15
  • SDG 16
  • SDG 17

The report details how ProCredit's initiatives contribute to these goals through various programs and actions.

Sustainable Products & Innovation

  • Green loans; green bonds.

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:770 ktCO2eq (Scope 3 financed emissions in 2022)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:770 ktCO2eq
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced Scope 1 and 2 emissions from 16,000 tCO2eq in 2015 to approximately 4,000 tCO2eq in 2022 (as shown in the graphic on page 5).
  • Achieved 20% green portfolio allocation in 2022.
  • Inaugurated a 3 MWp PV park in Kosovo, aiming to avoid 4,000 tCO2eq of emissions annually.

Social Achievements

  • Not disclosed

Governance Achievements

  • Established a Group Sustainability Steering Committee (GSSC), Group Risk Management Committee (GRMC), and Group ESG Risk Management Sub-Committee (ESGRC) to oversee climate action.
  • Joined the Net-Zero Banking Alliance (NZBA) and committed to setting near- and long-term emissions reduction targets aligned with the Science Based Targets initiative (SBTi) Net-Zero Standard.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (Scope 1, 2, and 3 category 15).
Medium-term Goals:
  • Increase the share of green portfolio to 25% in the next 5-7 years.
Short-term Goals:
  • Reduce own emissions by 42% before 2030 (2022 as baseline year).
  • Engage with clients responsible for 28% of total portfolio emissions by 2027 to support their target setting (focus on agriculture and manufacturing).

Environmental Challenges

  • Exposure to physical risks (flood, drought, wildfire) and transition risks (policy changes, technological innovations, shifting consumer preferences) due to geographical outreach and loan portfolio composition.
Mitigation Strategies
  • Implemented an exclusion list to reduce exposure to transition risk (e.g., excluding fossil fuel extraction financing).
  • Set key risk indicators (KRIs) for transition and environmental risks, monitored quarterly.
  • Conducting forward-looking stress-tests based on NGFS scenarios to quantify potential effects of climate change on the loan portfolio.
  • Identifying geographies with elevated exposure to physical risks for targeted adaptation and mitigation measures.
  • Providing green loans to clients to boost resilience and reduce transition risks (15% of green loan portfolio allocated to agriculture).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Implementation of a system to assess suppliers in terms of sustainability, including environmental measures related to climate mitigation (e.g. green labelling, energy efficiency measures, renewable energy).

Climate-Related Risks & Opportunities

Physical Risks
  • Flood, drought, wildfire
Transition Risks
  • Policy and regulation risk, technology risk, market risk from changes in consumer preferences
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol, PCAF

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:0.9 ktCO2eq (2023)
Scope 2 Emissions:3.3 ktCO2eq (2023)
Scope 3 Emissions:769.5 ktCO2eq (2022)
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Action
  • Decent Work and Economic Growth
  • Gender Equality
  • Industry, Innovation and Infrastructure
  • Affordable and Clean Energy

Environmental Achievements

  • Achieved carbon neutrality in own operations in 2023 through commissioning of a 3 MWp PV plant in Kosovo, avoiding nearly 3,500 tCO2 annually.
  • Reduced Scope 1 and 2 emissions by 71% from 2015 to 2023.
  • Increased share of electric vehicles in fleet to 45%.

Social Achievements

  • Supported the creation of an estimated 193,344 jobs in 2023 through business clients.
  • Launched Hive Room, a collaborative initiative supporting startups and freelancers.
  • Defined first Gender Action Plan to strengthen support for women's empowerment.
  • Trained 100% of employees on gender equity.

Governance Achievements

  • Finalized change in ProCredit Holding’s legal form to a joint stock corporation in September 2023.
  • Expanded Supervisory Board with new members bringing valuable expertise.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050.
Medium-term Goals:
  • Increase engagement with clients responsible for 28% of Scope 3 emissions by 2027.
Short-term Goals:
  • Reduce Scope 1 and 2 emissions by 42% by 2030.
  • Increase share of green loans in portfolio to 25%.

Environmental Challenges

  • Maintaining access to EU markets for SMEs.
  • Coping with regulatory requirements and strengthened financial market formalisation for SMEs.
  • Adapting to climate and social risks for SMEs.
Mitigation Strategies
  • Supporting SMEs in navigating challenges through tailored banking services and expertise.
  • Streamlining lending processes and vesting banks with more decision-making power.
  • Expanding retail banking services to broader population.
  • Investing heavily in people, IT, and marketing.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Physical climate risks in the agricultural sector
Transition Risks
  • Transition risks in the group portfolio
Opportunities
  • Green investments in renewable energy, energy efficiency, and sustainable agriculture

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, EMAS, EDGE Green Building (Ukraine head office)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 8
  • SDG 5
  • SDG 13
  • SDG 7
  • SDG 9

The report details how ProCredit's activities contribute to these SDGs through various initiatives.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed